What is an Insurance Deductible?
The deductible is the property owner’s portion of the cost to repair or replace a damaged item. Think of when you go to the doctor, and you pay your “co pay”. That payment is your portion of the bill owed to the doctor or pharmacist. The same is for property claims, the deductible is subtracted from the total payout, as it is the property owner’s responsibility.
Can you build in our deductible to the estimate?
The fact of the matter is that we do not create the estimate for the damages. That is something that is prepared by the adjuster using his software and pricing structure. All we can do is point out any additional items that are missing from the estimate or code items that need to be included. Therefore, there is no “padding” of the estimate to cover your deductible.
Why is there depreciation on my estimate?
Whenever an insurance company pays a claim, that claim is paid out either as a Replacement Cost Policy or an Actual Cash Value Policy. The differences between the two are the actual cost to replace an item and bring it back to it’s original condition and the cash value of the item at it’s current day value before it was damaged.
The difference between the two payments is measured by depreciation. On an Actual Cash Value policy, the depreciation is the age of the item or the amount of use that it has provided subtracted from the replacement cost.
On a replacement cost policy, the depreciation is recoverable or paid out once the work has been completed.